Chapter 1 Intro to Real Estate Flashcards
Generically speaking, a person who, for a fee, sells, lists, leases, exchanges, negotiates, or otherwise deals in the real estate of others or represents publicly that he or she does so.
Broker
A person or organization that engages in the business of trading securities, such as stocks and bonds, for its own account or on behalf of its customers.
Broker-Dealer
A business that serves as an intermediary between buyers and sellers and/or lessees and lessors of real estate.
Brokerage
A situation in the housing market when there are many homes available for sale, but few buyers.
Buyer’s Market
The interest rate that people or businesses must pay to use another’s money for their own purposes
Cost of Money
The main business or industry in an area that supports and sustains the community
Economic Base
Insurance that protects real estate licensees from liability due to mistakes or negligence. It does not cover claims related to fraud or discrimination
Errors and Omissions Insurance (E&O)
Under common law, a person who contracts to do a job for another, but who maintains control over how the task is carried out, rather than following detailed instructions
Independent Contractor
An increase in the cost of goods or services, or too many people wanting too few goods.
Inflation
Revocable, non-assignable permission to enter another person’s land for a stated purpose.
License
A characteristic of real property; each piece of land, each building, and each house is a unique piece of real estate. Also called Uniqueness or Heterogeneity.
Non-homogeneity
General swings in real estate activity, resulting in increasing or decreasing activity and property values, during different phases of the cycle.
Real Estate Cycles
Any real estate licensee who is a member of the National Association of REALTORS® (NAR) and his or her affiliated state/local boards. Only members may use the term REALTOR® as it’s a registered trademark of NAR.
REALTOR®
Generically speaking, a real estate licensee who is associated with a licensed broker and as such may perform most of the acts a broker can on behalf of the broker. Also called Sales Associate.
Salesperson
A physical characteristic of real property that says there is a limited supply of real estate; the perceived supply of a good or service relative to the demand for the item.
Scarcity
